Another slug on our beer drinkers

“AVERAGE Joe” beer drinkers are again going to be hit in the hip pocket if the Federal Government implements a proposal to overhaul Australia’s complex alcohol-tax regime.

But, controversially, the price of alcopops would be reduced.

A review of the national tax system headed by treasury boss Ken Henry is believed to have recommended replacing Australia’s antiquated and haphazard alcohol-excise regime with a cleaner “volumetric” system based on alcohol content.

Acknowledging the social and health impacts of alcohol use and abuse, the taxes would increase in accordance with the alcohol content at six key points: 3.5%, 5%, 7%, 10%, 15% and 22%.

An analysis by accounting firm KPMG for the Distilled Spirits Industry Council of Australia found the proposed incremental tax rates would lift the price of full-strength beer by about 5%.

Wine prices would probably rise about 1% and spirits, which are already heavily taxed, would remain about the same.

But in a political sticking point such changes could result in a drop in the price of alcopops, which have controversially been singled out by the Federal Government for special tax treatment after being blamed for encouraging binge drinking, particularly among young women.

The KPMG analysis estimated the price of mid-strength alcopops would fall by about 8.5%.

Under the proposed new alcohol tax regime, the price of a full-strength schooner of beer would increase from $4.20 at present to about $4.41, while a full-strength pot of beer would rise from $3.10 to about $3.26.

The price of house wine would go from $5.50 to about $5.55.

Australian Hotels Association spokesman Hamish Arthur told the Daily that the body had made it clear in a special submission to Mr Henry that it believed the current alcohol-tax system should remain in place.

Mr Arthur said the AHA was especially keen to see the government maintain the differential excise on draught beer, which is keg beer served on licensed premises.

He said the excise differential reflected the extra costs incurred by venues in providing that product, such staff salaries and hiring security.

“Our core position is, any type of alcohol served on licensed premises should attract a lower rate of tax than packaged or takeaway alcohol,” he said.

Duporth Tavern manager Allan Caples said the new excise regime would hurt the “average Joe”.

“It would make it a lot cheaper for kids who enjoy drinking premixes, but punish the family man who likes a beer after work,” he said, adding mid-strength beer was the most popular.

The review is with treasurer Wayne Swan, and a response is likely about March.